United States v. Equity Homes, Inc. (D. S.D.)2010/12/14 · 10. 10. Defendant Equity Homes, Inc....

ED.lUJ .AFMAY 06 2009

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FH.1ED MAY 06 2009

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IN IN THE THE UNITED UNITED STATES STATES DISTRICT DISTRICT COURT COURT FOR FOR THE THE DISTRICT DISTRICT OF OF SOUTH SOUTH DAKOTA DAKOTA

SOUTHERN SOUTHERN DIVISION DIVISION

COMPLAINT COMPLAINT

The The United United States States of of America America alleges: alleges:

NATURE NATURE OF OF ACTION ACTION

I. I. This This action action is is brought brought by by the the United United States States to to enforce enforce the the Fair Fair Housing Housing Act, Act, Title Title VIII VIII of of

the the Civil Civil Rights Rights Act Act of of 1968, 1968, as as amended amended by by the the Fair Fair Housing Housing Amendments Amendments Act Act of of 1988, 1988,

42 42 U.S.C. U.S.C. §§ §§ 3601-3619 3601-3619 ("FHA"). ("FHA").

JURISDICTION JURISDICTION & & VENUE VENUE

2. 2. This This Court Court has has jurisdiction jurisdiction over over this this action action pursuant pursuant to to 28 28 U.S.c. U.S.c. §§ §§ 1331 1331 and and 1345, 1345, and and

42 42 U.S.c. U.S.c. §§ §§ 3612(0) 3612(0) and and 3614(a). 3614(a).

3. 3. Venue Venue is is proper proper in in this this jurisdiction, jurisdiction, pursuant pursuant to to 28 28 V.S.c. U.S.c. § § 1391(b) J39J(b) and and 42 42 U.S.C. U.S.C. § §

3612(36J2( 0), 0), because because the the Defendants Defendants are are located located in in this this judicial judicial district district and and the the events events or or

omissions omissions giving giving rise rise to to the the claims claims alleged alleged in in this this action action occurred occurred in in this this judicial judicial district. district.

Civil Action No. Civil Action No. ()9 - LfOS1

UNITED UNITED STATES STATES OF OF AMERICA, AMERICA, ) ) ) )

Plaintiff, Plaintiff, ) ) ) )

v. v. ) ) ) )

EQUITY EQUITY HOMES, HOMES, INC., INC., PBR, PBR, LLC, LLC, BBR, BBR, LLC, LLC, ) ) SHANE SHANE HARTUNG HARTUNG d/b/a!d/b/a! HARTUNG HARTUNG DESIGN, DESIGN, ) ) SCOTT SCOTT SNOOZY, SNOOZY, MYRON MYRON R. R. VV AN AN BUSKIRK, BUSKIRK, ) ) WAYNE WAYNE HANSEN, HANSEN, as as Trustee Trustee of of the the HANSEN HANSEN ) ) FAMILY FAMILY TRUST TRUST AGREEMENT, AGREEMENT, ) ) MARTIN MARTIN MCGEE, MCGEE, as as Trustee Trustee of of the the MARTIN MARTIN ) ) H. H. MCGEE MCGEE TRUST, TRUST, and and SERTOMA SERTOMA HILLS HILLS ) ) VILLAS VILLAS ASSOCIATION, ASSOCIATION, Inc., Inc., ) )

) ) Defendants. Defendants. ) )

----------------)---------------------------)

()9 - Lfos<1

Case 4:09-cv-04059-LLP Document 1 Filed 05/06/09 of 14

SUBJECT PROPERTIES PROPERTIES

4. 4. East East Briar Briar Estates Estates ("East ("East Briar") Briar") is is a a multi-unit multi-unit apartment apartment complex complex located located on on East East 15th 15th

Street, Street, Sioux Sioux Falls, Falls, South South Dakota Dakota 57110. 57110. The The complex complex consists consists of of four four buildings buildings with with

eight eight units units each. each. None None of of the the buildings buildings has has an an elevator. elevator. East East Briar Briar was was designed designed and and

constructed constructed for for first first occupancy occupancy after after March March 13, 13, 1991. 1991. Each Each unit unit at at East East Briar Briar is is a a

"dwelling" "dwelling" within within the the meaning meaning of of 42 42 U.S.C. U.S.C. § § 3602(b). 3602(b). Each Each of of the the ground ground floor floor units units

(sixteen (sixteen units units across across four four buildings), buildings), are are "covered "covered multifamily multifamily dwellings" dwellings" within within the the

meaning meaning of of 42 42 U.S.C. U.S.C. § § 3604{f){7)(B), 3604(f)(7)(B), and and are are subject subject to to the the design design and and construction construction

requirements requirements of of 42 42 U.S.C. U.S.C. § § 3604{f)(3)(C). 3604(f)(3)(C).

5. 5. West West Briar Briar Estates Estates ("West ("West Briar") Briar") is is a a multi-unit multi-unit apartment apartment complex complex located located on on West West

26th 26th Street, Street, Sioux Sioux Falls, Falls, South South Dakota Dakota 57106. 57106. The The complex complex consists consists offour offour buildings buildings

with with eight eight units units each. each. None None of of the the buildings buildings has has an an elevator. elevator. West West Briar Briar was was designed designed

and and constructed constructed for for first first occupancy occupancy after after March March 13, 13, 1991. 1991. Each Each unit unit at at West West Briar Briar is is a a

"dwelling" "dwelling" within within the the meaning meaning of of 42 42 U.S.C. U.S.C. § § 3602(b). 3602(b). Each Each of of the the ground ground floor floor units units

(sixteen (sixteen units units across across four four buildings), buildings), are are "covered "covered multifamily multifamily dwellings" dwellings" within within the the

meaning meaning of of 42 42 U.S.C. U.S.C. § § 3604(f){7)(B), 3604(f)(7)(B), and and are are subject subject to to the the design design and and construction construction

requirements requirements of of 42 42 U.S.C. U.S.C. § § 3604(f)(3){C). 3604(f)(3)(C).

6. 6. Beverly Beverly Gardens Gardens Apartments Apartments ("Beverly ("Beverly Gardens") Gardens") is is a a multi-unit multi-unit apartment apartment complex complex

located located on on South South Williams Williams Avenue, Avenue, Sioux Sioux Falls, Fails, South South Dakota Dakota 57104. 57104. The The complex complex

consists consists of of two two buildings. buildings. Each Each unit unit at at Beverly Beverly Gardens Gardens is is a a "dwelling" "dwelling" within within the the

meaning meaning of42 of42 U.S.C. U.S.C. § § 3602{b). 3602(b). One One of of these these two two buildings buildings at at Beverly Beverly Gardens Gardens was was

designed designed and and constructed constructed for for first first occupancy occupancy after after March March 13, 13, 1991, 1991, and and has has four four total total

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units. The The building building does does not not have have an an elevator. elevator. Both Both of of the the two two ground ground floor floor units units in in that that

building building are are "covered "covered multifamily multifamily dwellings" dwellings" within within the the meaning meaning of of 42 42 U.S.c. U.S.c. § §

3604(f)(7)(B), 3604(f)(7)(B), and and are are subject subject to to the the design design and and construction construction requirements requirements of of 42 42 U.S.C. U.S.C. § §

3604(f)(3)(C). 3604(f)(3)(C).

7. 7. Kensington Kensington Apartments Apartments (,'Kensington") ("'Kensington") is is a a multi-unit multi-unit apartment apartment complex complex located located on on

South South Pillsberry Pillsberry Avenue, Avenue, Sioux Sioux Falls, Falls, South South Dakota Dakota 57103. 57103. The The complex complex consists consists of of six six

buildings buildings with with eight eight units units each. each. None None of of the the buildings buildings has has an an elevator. elevator. Kensington Kensington was was

designed designed and and constructed constructed for for first first occupancy occupancy after after March March 13, 13, 1991. 1991. Each Each unit unit at at

Kensington Kensington is is a a "dwelling" "dwelling" within within the the meaning meaning of of 42 42 U.S.C. U.S.C. § § 3602(b). 3602(b). Each Each of of the the

ground ground floor floor units units (twenty-four (twenty-four units units across across six six buildings), buildings), are are "covered "covered multifamily multifamily

dwellings" dwellings" within within the the meaning meaning of of 42 42 U.S.C. U.S.C. § § 3604(f)(7)(B), 3604(f)(7)(B), and and are are subject subject to to the the design design

and and construction construction requirements requirements of of 42 42 U.S.c. U.S.c. § § 3604(f)(3)(C). 3604(f)(3)(C).

8. 8. Sertoma Sertoma Hills Hills Apartments Apartments ("Sertoma ("Sertoma Apartments") Apartments") is is a a multi-unit multi-unit apartment apartment complex complex

located located on on West West 56th 56th Street, Street, Sioux Sioux Falls, Falls, South South Dakota Dakota 57106. 57106. The The complex complex consists consists of of

six six buildings buildings with with eight eight units units each. each. None None ofof the the buildings buildings has has an an elevator. elevator. Sertoma Sertoma

Apartments Apartments was was designed designed and and constructed constructed for for first first occupancy occupancy after after March March 13, 13, 1991. 1991. Each Each

unit unit at at Sertoma Sertoma Apartments Apartments is is a a "dwelling" "dwelling" within within the the meaning meaning of of 42 42 U.S.C. U.S.C. § § 3602(b). 3602(b).

Each Each ofthe ofthe ground ground floor floor units units (twenty-four (twenty-four units units across across six six buildings), buildings), are are "covered "covered

multifamily multifamily dwellings" dwellings" within within the the meaning meaning of of 42 42 U.S.C. U.S.C. § § 3604(f)(7)(B), 3604(f)(7)(B), and and are are subject subject

to to the the design design and and construction construction requirements requirements of of 42 42 U.S.C. U.S.C. § § 3604(f)(3)(C). 3604(f)(3)(C).

9. 9. Sertoma Sertoma Hills Hills Villas Villas ("Sertorua ("Sertorua Villas") Villas") is is a a multi-unit multi-unit condominium condominium development development

located located on on West West 56th 56th Street. Street, Sioux Sioux Falls, Falls, South South Dakota Dakota 57106. 57106. The The development development consists consists

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DEFENDANTS DEFENDANTS

10. 10. Defendant Defendant Equity Equity Homes, Homes, Inc. Inc. ("Equity ("Equity Homes") Homes") is is a a South South Dakota Dakota corporation corporation with with its its

principal principal place place of of business business in in Sioux Sioux Falls, Falls, South South Dakota. Dakota. Equity Equity Homes Homes is, is, or or was was at at

times times relevant relevant to to this this action, action, the the builder builder and/or and/or building building contractor contractor for for East East Briar, Briar, West West

Briar, Briar, Beverly Beverly Gardens, Gardens, Kensington, Kensington, Sertoma Sertoma Apartments, Apartments, and and Sertoma Sertoma Villas Villas

(collectively, (collectively, the the "Subject "Subject Properties"). Properties").

13. 13. Defendant Defendant Shane Shane Hartung Hartung is is a a draftsman draftsman residing residing in in Sioux Sioux Falls, Falls, South South Dakota. Dakota. While While

doing doing business business as as Hartung Hartung Design, Design, Hartung Hartung drafted drafted the the floor floor plan plan ofof a a multifamily multifamily

apartment apartment building building at at Beverly Beverly Gardens Gardens that that was was designed designed and and constructed constructed for for first first

occupancy occupancy after after March March 13, 13, 1991. 1991. Defendant Defendant Hartung Hartung also also drafted drafted plans plans that that Equity Equity

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oftwo two buildings buildings with with eight eight units units each. each. Neither Neither of of the the buildings buildings has has an an elevator. elevator. Sertoma Sertoma

Villas Villas was was designed designed and and constructed constructed for for first first occupancy occupancy after after March March 13, 13, 1991. 1991. Each Each unit unit

at at Sertoma Sertoma Villas Villas is is a a "dwelling" "dwelling" within within the the meaning meaning of of 42 42 U.S.c. U.S.c. § § 3602(b). 3602(b). Each Each of of the the

ground ground floor floor units units (eight (eight units units across across two two buildings), buildings), are are "covered "covered multifamily multifamily dwellings" dwellings"

within within the the meaning meaning of of 42 42 U.S.C. U.S.C. § § 3604(1)(7)(B), 3604(f)(7)(B), and and are are subject subject to to the the design design and and

construction construction requirements requirements of of 42 42 U.S.c. U.S.c. § § 3604(t)(3)(C). 3604(f)(3)(C).

11. II. Defendant Defendant PBR, PBR, LLC LLC ("PBR") ("PBR") is is a a South South Dakota Dakota limited limited liability liability company company with with its its

principal principal place place of of business business in in Sioux Sioux Falls, Falls, South South Dakota. Dakota. PBR PBR owned owned East East Briar Briar and and

West West Briar Briar during during construction. construction.

12. 12. Defendant Defendant BBR, BBR, LLC LLC ("BBR") ("BBR") is is a a South South Dakota Dakota limited limited liability liability company company with with its its

principal principal place place of of business business in in Sioux Sioux Falls, Falls, South South Dakota. Dakota. BBR BBR owned owned Kensington, Kensington,

Sertoma Sertoma Apartments, Apartments, and and Sertoma Sertoma Villas, Villas, during during construction. construction.


Homes used used in in constructing constructing Sertoma Sertoma Apartments Apartments and and Sertoma Sertoma Villas. Villas. The The plans plans drafted drafted

by by Defendant Defendant Hartung Hartung included included accessibility accessibility barriers barriers in in violation violation ofthe ofthe FHA. FHA.

14. 14. Collectively, Collectively, Equity Equity Homes, Homes, PBR, PBR, BBR, BBR, and and Hartung Hartung are are referred referred to to herein herein as as "the "the FHA FHA

Defendants.Defendants. " "

15. IS. Defendant Defendant Scott Scott Snoozy Snoozy is is a a resident resident of of Sioux Sioux Falls, Falls, South South Dakota. Dakota. Defendant Defendant Snoozy Snoozy is is

the the current current owner owner of of East East Briar, Briar, and and is is a a necessary necessary party party in in this this action action in in whose whose absence absence

complete complete relief relief cannot cannot be be afforded afforded to to the the United United States. States.

16. 16. Defendant Defendant Myron Myron R. R. Van Van Buskirk Buskirk is is a a resident resident of of Sioux Sioux Falls, Falls, South South Dakota. Dakota. Defendant Defendant

Van Van Buskirk Buskirk is is the the current current owner owner of of West West Briar, Briar, and and is is a a necessary necessary party party in in this this action action in in

whose whose absence absence complete complete relief relief cannot cannot be be afforded afforded to to the the United United States. States.

17. 17. Defendant Defendant Wayne Wayne Hansen Hansen is is a a resident resident ofof Rapid Rapid City, City, South South Dakota, Dakota, and and is is the the trustee trustee of of

the the Hansen Hansen Family Family Trust Trust Agreement Agreement ("Hansen"). ("Hansen"). Hansen Hansen is is the the current current owner owner of of

Kensington, Kensington, does does business business in in the the District District of of South South Dakota, Dakota, and and is is a a necessary necessary party party in in this this

action action in in whose whose absence absence complete complete relief relief cannot cannot be be afforded afforded to to the the United United States. States.

18. 18. Defendant Defendant Myron Myron McGee McGee is is a a resident resident of of California, California, and and is is the the trustee trustee of of the the Myron Myron H. H.

McGee McGee Trust Trust ("McGee"). ("McGee"). McGee McGee is is the the current current owner owner of of Sertoma Sertoma Apartments, Apartments, does does

business business in in the the District District of of South South Dakota, Dakota, and and is is a a necessary necessary party party in in this this action action in in whose whose

absence absence complete complete relief relief cannot cannot be be afforded afforded to to the the United United States. States.

19. 19. Defendant Defendant Sertoma Sertoma Hills Hills Villas Villas Association, Association, Inc. Inc. ("SHVA") ("SHVA") is is a a South South Dakota Dakota non-profit non-profit

corporation corporation with with its its principal principal place place of of business business in in Sioux Sioux Falls, Falls, South South Dakota. Dakota. Defendant Defendant

SHVA SHVA currently currently governs governs Sertoma Sertoma Villas, Villas, and and is is a a necessary necessary party party in in this this action action in in whose whose

absence absence complete complete relief relief cannot cannot be be afforded afforded to to the the United United States. States.

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INACCESSIBLE DESIGN DESIGN & & CONSTRUCTION CONSTRUCTION

20. 20. Equity Equity Homes Homes and and PBR, PBR, individually individually or or through through their their respective respective agents, agents, have have engaged engaged in in

discriminatory discriminatory housing housing practices practices at at East East Briar Briar and and West West Briar. Briar. These These discriminatory discriminatory

housing housing practices practices include, include, but but are are not not limited limited to, to, failing failing to to design design and and construct construct these these

properties properties such such that: that:

a. a. the the public public use use and and common common use use portions portions are are readily readily accessible accessible to to and and usable usable

by by individuals individuals with with disabilities; disabilities;

b. b. all all doors doors within within the the ground ground floor floor units units are are sufficiently sufficiently wide wide to to allow allow passage passage

by by persons persons with with disabilities disabilities who who use use wheelchairs; wheelchairs; and and

c. c. the the ground ground floor floor units units contain contain the the following following features features of of adaptive adaptive design: design:

(i) (i) an an accessible accessible route route into into and and through through the the dwelling; dwelling; (ii) (ii) electrical electrical outlets, outlets,

thermostats thermostats and and other other environmental environmental controls controls in in accessible accessible locations; locations; and and (iii) (iii)

usable usable kitchens kitchens and and bathrooms bathrooms such such that that an an individual individual using using a a wheelchair wheelchair can can

maneuver maneuver about about the the space. space.

21. 21. Equity Equity Homes, Homes, BBR, BBR, and and Hartung, Hartung, individually individually or or through through their their respective respective agents, agents, have have

engaged engaged in in discriminatory discriminatory housing housing practices practices at at Sertoma Sertoma Apartments, Apartments, and and Sertoma Sertoma Villas. Villas.

These These discriminatory discriminatory housing housing practices practices include, include, but but are are not not limited limited to, to, failing failing to to design design

and and construct construct these these properties properties such such that: that:




by by persons persons with with disabilities disabilities who who use use wheelchairs; wheelchairs; and and

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c. the the ground ground floor floor units units contain contain the the following following features features of of adaptive adaptive design: design:

(i) (i) an an accessible accessible route route into into and and through through the the dwelling; dwelling; (ii) (ii) electrical electrical outlets, outlets,

thermostats thermostats and and other other environmental environmental controls controls in in accessible accessible locations; locations; and and (iii) (iii)

usable usable kitchens kitchens and and bathrooms bathrooms such such that that an an individual individual using using a a wheelchair wheelchair can can

maneuver maneuver about about the the space. space.

22. 22. Equity Equity Homes Homes and and Hartung, Hartung, individually individually or or through through their their respective respective agents, agents, have have engaged engaged

in in discriminatory discriminatory housing housing practices practices at at Beverly Beverly Gardens. Gardens. These These discriminatory discriminatory housing housing

practices practices include, include, but but are are not not limited limited to, to, failing failing to to design design and and construct construct these these properties properties

such such that: that:


by by individuals individuals with with disabilities; disabilities; and and

b. b. the the ground ground floor floor units units contain contain the the following following features features of of adaptive adaptive design: design: (i) (i) an an

accessible accessible route route into into and and through through the the dwelling; dwelling; (ii) (ii) electrical electrical outlets, outlets, thermostats thermostats

and and other other environmental environmental controls controls in in accessible accessible locations; locations; and and (iii) (iii) usable usable kitchens kitchens

and and bathrooms bathrooms such such that that an an individual individual using using a a wheelchair wheelchair can can maneuver maneuver about about the the

space. space.

23. 23. Equity Equity Homes Homes and and BBR, BBR, individually individually or or through through their their respective respective agents, agents, have have engaged engaged in in

discriminatory discriminatory housing housing practices practices at at Kensington. Kensington. These These discriminatory discriminatory housing housing practices practices

include, include, but but are are not not limited limited to, to, failing failing to to design design and and construct construct these these properties properties such such that: that:




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by persons persons with with disabilities disabilities who who use use wheelchairs; wheelchairs; and and

c. c. the the ground ground floor floor units units contain contain the the following following features features of of adaptive adaptive design: design: (i) (i) an an

accessible accessible route route into into and and through through the the dwelling; dwelling; (ii) (ii) electrical electrical outlets, outlets, thennostats thennostats

and and other other environmental environmental controls controls in in accessible accessible locations; locations; and and (iii) (iii) usable usable kitchens kitchens

and and bathrooms bathrooms such such that that an an individual individual using using a a wheelchair wheelchair can can maneuver maneuver about about the the

space. space.

COUNT COUNT I I

24. 24. Plaintiff Plaintiff re-alleges re-alleges and and incorporates incorporates by by reference reference herein herein the the allegations allegations set set forth forth above. above.

25. 25. Complainant Complainant Fair Fair Housing Housing of of the the Dakotas Dakotas ("FHD") ("FHD") is is a a non-profit non-profit fair fair housing housing

enforcement enforcement agency agency with with its its principal principal place place of of business business at at 909 909 Basin Basin Avenue, Avenue, Suite Suite 2, 2,

Bismarck, Bismarck, North North Dakota Dakota 58504. 58504.

26. 26. On On or or about about May May 6, 6, 2004, 2004, FHD FHD received received a a citizen citizen complaint complaint indicating indicating that that Kensington Kensington

was was not not accessible accessible to to persons persons with with disabilities. disabilities. FHD FHD investigated investigated the the complaint complaint and and

found found infonnation infonnation indicating indicating that that the the Subject Subject Properties Properties were were not not accessible accessible to to persons persons

with with disabilities. disabilities.

27. 27. On On or or about about July July 6, 6, 2004, 2004, FHD FHD filed filed timely timely HUD HUD complaints complaints under under 42 42 U.S.c. U.S.c. § § 361O(a) 361O(a)

alleging alleging that that Equity Equity Homes, Homes, PBR, PBR, and and BBR BBR had had discriminated discriminated against against it it on on the the basis basis of of

disability disability in in violation violation of of the the Fair Fair Housing Housing Act, Act, as as amended, amended, 42 42 U.S.c. U.S.c. § § 3601 3601 et et seq. seq.

Specifically, Specifically, FHD FHD alleged alleged that that Equity Equity Homes Homes and and PBR PBR had had discriminated discriminated against against it it on on

the the basis basis of of disability disability by by designing designing and and constructing constructing East East Briar Briar and and West West Briar Briar to to be be

inaccessible inaccessible in in violation violation of of the the FHA. FHA. FHD FHD also also alleged alleged that that Equity Equity Homes Homes and and BBR BBR had had

discriminated discriminated against against it it on on the the basis basis of of disability disability by by designing designing and and constructing constructing Sertoma Sertoma

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Apartments and and Sertoma Sertoma Villas Villas to to be be inaccessible inaccessible in in violation violation of of the the FHA. FHA. FHD FHD further further

alleged alleged that that Equity Equity Homes Homes had had discriminated discriminated against against it it on on the the basis basis of of disability disability by by

designing designing and and constructing constructing Beverly Beverly Gardens Gardens and and Kensington Kensington to to be be inaccessible inaccessible in in

violation violation ofof the the FHA. FHA. FHD FHD subsequently subsequently amended amended its its complaints complaints to to add add Shane Shane Hartung Hartung

as as a a respondent respondent with with respect respect to to the the design design and and construction construction of of Beverly Beverly Gardens, Gardens, Sertoma Sertoma

Apartmants, Apartmants, and and Sertoma Sertoma Villas, Villas, BBR BBR as as a a respondent respondent with with respect respect to to Kensington, Kensington, and and

the the current current owners owners or or governing governing entity entity of of the the complexes, complexes, Van Van Buskirk, Buskirk, Hansen, Hansen, McGee, McGee,

and and SHVSHV A, A, as as parties parties necessary necessary to to obtain obtain complete complete relief. relief.

28. 28. Pursuant Pursuant to to the the requirements requirements ofof 42 42 U.S.C. U.S.C. §§ §§ 361 361 O(a) O(a) and and (b), (b), the the Secretary Secretary ofHUD ofHUD ("the ("the

Secretary") Secretary") conducted conducted an an investigation investigation of of the the above-mentioned above-mentioned complaints complaints regarding regarding the the

Subject Subject Properties, Properties, attempted attempted conciliation conciliation without without success, success, and and prepared prepared final final

investigatory investigatory reports. reports.

29. 29. Based Based on on the the information information gathered gathered in in this this investigation, investigation, the the Secretary, Secretary, pursuant pursuant to to 42 42

U.S.c. U.S.c. § § 36l0(g)(I), 36l0(g)(I), determined determined that that reasonable reasonable cause cause exists exists to to believe believe that that illegal illegal

discriminatory discriminatory housing housing practices practices occurred occurred at at East East Briar, Briar, West West Briar, Briar, Beverly Beverly Gardens, Gardens,

Sertoma Sertoma Apartments, Apartments, and and Sertoma Sertoma Villas. Villas. Accordingly, Accordingly, on on or or about about September September 30, 30, 2008 2008

(East (East Briar), Briar), March March 10,2009 10,2009 (West (West Briar), Briar), and and March March 25, 25, 2009 2009 (Beverly (Beverly Gardens, Gardens,

Sertoma Sertoma Apartments Apartments and and Sertoma Sertoma Villas), Villas), the the Secretary Secretary issued issued Determinations Determinations of of

Reasonable Reasonable Cause Cause and and Charges Charges ofof Discrimination. Discrimination. The The Secretary Secretary charged: charged: Defendant Defendant

Equity Equity Homes Homes with with engaging engaging in in discriminatory discriminatory housing housing practices practices in in violation violation ofof the the FHA FHA

with with respect respect to to East East Briar, Briar, West West Briar, Briar, Beverly Beverly Gardens, Gardens, Sertoma Sertoma Apartments Apartments and and

Sertoma Sertoma Villas; Villas; Defendant Defendant PBR PBR with with engaging engaging in in discriminatory discriminatory housing housing practices practices in in

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violation of of the the FHA FHA with with respect respect to to East East Briar Briar and and West West Briar; Briar; Defendant Defendant BBR BBR with with

engaging engaging in in discriminatory discriminatory housing housing practices practices in in violation violation of of the the FHA FHA with with respect respect to to

Sertoma Sertoma Apartments Apartments and and Sertoma Sertoma Villas; Villas; and and Defendant Defendant Shane Shane Hartung Hartung with with engaging engaging in in

discriminatory discriminatory housing housing practices practices in in violation violation of of the the FHA FHA with with respect respect to to Beverly Beverly

Gardens, Gardens, Sertoma Sertoma Apartments, Apartments, and and Sertoma Sertoma Villas. Villas.

30. 30. On On or or about about October October 9,2008 9,2008 (East (East Briar), Briar), March March 20, 20, 2009 2009 (West (West Briar), Briar), and and March March 27, 27,

2009 2009 (Beverly (Beverly Gardens, Gardens, Sertoma Sertoma Apartments Apartments and and Sertoma Sertoma Villas), Villas), Complainant Complainant FHD FHD

elected elected to to have have the the claims claims asserted asserted in in HUD's HUD's Charges Charges of of Discrimination Discrimination resolved resolved in in a a

federal federal civil civil action, action, pursuant pursuant to to 42 42 U.S.c. U.S.c. § § 3612(a). 3612(a).

31. 31. The The Secretary Secretary subsequently subsequently authorized authorized the the Attorney Attorney General General to to commence commence this this

action, action, pursuant pursuant to to 42 42 U.S.C. U.S.C. § § 3612(0), 3612(0), with with respect respect to to East East Briar, Briar, West West Briar, Briar, Beverly Beverly

Gardens, Gardens, Sertoma Sertoma Apartments, Apartments, and and Sertoma Sertoma Villas. Villas.

32. 32. The The FHA FHA Defendants, Defendants, through through the the actions actions referred referred to to in in paragraphs paragraphs 20 20 -- 22, 22, have: have:

a. a. Discriminated Discriminated in in the the rental rental of, of, or or otherwise otherwise made made unavailable unavailable or or denied, denied,

dwellings dwellings to to renters renters because because of of handicap, handicap, in in violation violation of of 42 42 U.S.C. U.S.C. § § 3604(f)(l); 3604(f)(l);

b. b. Discriminated Discriminated against against persons persons in in the the terms, terms, conditions conditions or or privileges privileges of of rental rental

of of a a dwelling, dwelling, or or in in the the provision provision of of services services or or facilities facilities in in connection connection with with a a

dwelling, dwelling, because because of of handicap, handicap, in in violation violation of of 42 42 U.S.c. U.S.c. § § 3604(f)(2); 3604(f)(2); and and

c. c. Discriminated Discriminated in in the the rental rental of, of, or or otherwise otherwise made made unavailable unavailable or or denied, denied,

dwellings dwellings to to renters renters because because of of handicap handicap by by failing failing to to design design and and construct construct

covered covered multifamily multifamily dwellings dwellings with with the the required required accessibility accessibility features, features, in in

violation violation of of 42 42 U.S.C. U.S.C. § § 3604(f)(3). 3604(f)(3).

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33. The The FHA FHA Defendants' Defendants' failure failure to to design design and and construct construct East East Briar, Briar, West West Briar, Briar, Beverly Beverly

Gardens, Gardens, Sertoma Sertoma Apartments, Apartments, and/or and/or Sertoma Sertoma Villas Villas with with the the requisite requisite accessible accessible

features features constitutes constitutes a a continuing continuing violation violation ofthe ofthe Fair Fair Housing Housing Act. Act.

34. 34. FHD FHD is is an an aggrieved aggrieved person person within within the the meaning meaning of of the the Fair Fair Housing Housing Act, Act, 42 42 U.S.C. U.S.C. § §

36020). 3602(i), and and has has suffered suffered damages damages as as a a result result of of FHA FHA Defendants' Defendants' conduct conduct described described

above. above.

35. 35. The The discriminatory discriminatory actions actions of of the the FHA FHA Defendants Defendants were were intentional, intentional, willful, willful, and and taken taken in in

disregard disregard for for the the rights rights of of others. others.

COUNT COUNT II II

36. 36. Plaintiff Plaintiff re-alleges re-alleges and and incorporates incorporates by by reference reference herein herein the the allegations allegations set set forth forth above. above.

37. 37. On On or or about about March March 24, 24, 2009, 2009, pursuant pursuant to to 42 42 UU .S.C. .S.C. § § 36l36l O(O( ee )(2), )(2), the the Secretary Secretary referred referred

to to the the Attorney Attorney General General FHD's FHD's HUD HUD complaint complaint alleging alleging that that Equity Equity Homes Homes and and BBR BBR had had

discriminated discriminated against against it it on on the the basis basis of of disability disability by by designing designing and and constructing constructing

Kensington Kensington to to be be inaccessible inaccessible in in violation violation ofof the the Fair Fair Housing Housing Act, Act, as as amended, amended, 42 42

U.S.C. U.S.C. § § 360 360 l I et et seq. seq.

38. 38. The The FHA FHA Defendants, Defendants, through through the the actions actions referred referred to to in in paragraphs paragraphs 20 20 -- 23, 23, have: have:

a. a. Discriminated Discriminated in in the the rental rental of, of, or or otherwise otherwise made made unavailable unavailable or or denied, denied,

dwellings dwellings to to renters renters because because of of handicap, handicap, in in violation violation of of 42 42 U.S.C. U.S.C. § § 3604(1)(1); 3604(1)(1);

b. b. Discriminated Discriminated against against persons persons in in the the terms, terms, conditions conditions or or privileges privileges of of rental rental

of of a a dwelling, dwelling, or or in in the the provision provision of of services services or or facilities facilities in in connection connection with with a a

dwelling, dwelling, because because of of handicap, handicap, in in violation violation of of 42 42 U.S.c. U.S.c. § § 3604(1)(2); 3604(1)(2); and and

c. c. Discriminated Discriminated in in the the rental rental of, of, or or otherwise otherwise made made unavailable unavailable or or denied, denied,

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dwellings to to renters renters because because of of handicap handicap by by failing failing to to design design and and construct construct

covered covered multifamily multifamily dwellings dwellings with with the the required required accessibility accessibility features, features, in in

violation violation of of 42 42 U.S.C. U.S.C. § § 3604(f)(3). 3604(f)(3).

39. 39. With With respect respect to to the the Subject Subject Properties, Properties, the the conduct conduct of of the the FHA FHA Defendants Defendants described described in in

the the allegations allegations set set forth forth above above in in paragraphs paragraphs 20 20 -- 23 23 and and 38 38 constitutes: constitutes:

(a) (a) a a pattern pattern or or practice practice of of resistance resistance to to the the full full enjoyment enjoyment of of rights rights granted granted by by the the

Fair Fair Housing Housing Act, Act, 42 42 U U.S.C. .S.C. § §§ § 3601-3619, 3601-3619, or or

(b) (b) a a denial denial to to a a group group of of persons persons of of rights rights granted granted by by the the Fair Fair Housing Housing Act, Act, 42 42

U.S.C. U.S.C. §§ §§ 3601-3619, 3601-3619, which which denial denial raises raises an an issue issue ofof general general public public importance. importance.

40. 40. In In addition addition to to FHD, FHD, there there may may be be other other victims victims of of the the FHA FHA Defendants' Defendants' discriminatory discriminatory

actions actions and and practices practices who who are are aggrieved aggrieved persons persons as as defined defined in in 42 42 U.S.C. U.S.C. § § 3602(i). 3602(i). These These

persons persons may may have have suffered suffered actual actual injury injury and and damages damages as as a a result result ofof the the above above actions actions and and

practices. practices.

41. 41. The The discriminatory discriminatory actions actions of of the the FHA FHA Defendants Defendants were were intentional, intentional, willful, willful, and and taken taken in in

disregard disregard for for the the rights rights of of others. others.

PRAYER PRAYER FOR FOR RELTEF RELTEF

WHEREFORE, WHEREFORE, the the United United States States prays prays that that the the Court Court enter enter an an order order that: that:

1. 1. Declares Declares that that the the FHA FHA Defendants' Defendants' policies, policies, practices, practices, and and conduct, conduct, as as alleged alleged herein, herein,

violate violate the the Fair Fair Housing Housing Act; Act;

2. 2. Declares Declares that that the the FHA FHA Defendants Defendants have have engaged engaged in in a a pattern pattern or or practice practice of of resistance resistance to to

the the full full enjoyment enjoyment of of rights rights granted granted by by the the Fair Fair Housing Housing Act, Act, and and that that a a group group of of persons persons

has has been been denied denied rights rights granted granted by by the the Fair Fair Housing Housing Act Act and and that that such such denial denial raises raises an an

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issue of of general general public public importance; importance;

3. 3. Enjoins Enjoins the the FHA FHA Defendants, Defendants, their their officers, officers, employees, employees, agents, agents, successors successors and and all all other other

persons persons in in active active concert concert or or participation participation with with any any of of them, them, from: from:

a. a. Failing Failing or or refusing refusing to to bring bring the the ground ground floor floor units units and and public public use use and and common common

use use areas areas at at the the Subject Subject Properties Properties into into compliance compliance with with 42 42 U.S.C. U.S.C. § §

3604(f)(3)(C); 3604(f)(3)(C);

b. b. Failing Failing or or refusing refusing to to take take such such affirmative affirmative steps steps as as may may be be necessary necessary to to

restore, restore, as as nearly nearly as as practicable, practicable, victims victims of of the the FHA FHA Defendants' Defendants' unlawful unlawful

practices practices to to the the position position they they would would have have been been in in but but for for the the discriminatory discriminatory

conduct; conduct; and and

c. c. Designing Designing or or constructing constructing covered covered multifamily multifamily dwellings dwellings in in the the future future that that do do

not not contain contain the the accessibility accessibility and and adaptability adaptability features features required required by by 42 42 U.S.C. U.S.C.

§ § 3604(f)(3)(C); 3604(f)(3)(C);

4. 4. Enjoins Enjoins the the Defendants Defendants described described above above in in Paragraphs Paragraphs 15 15 -- 19 19 from from engaging engaging in in conduct conduct

that that denies denies access access to to the the common common and and public public use use areas areas and and the the covered covered multifamily multifamily

dwellings dwellings under under their their ownership ownership or or management management or or from from failing failing to to take take any any other other action action

appropriate appropriate to to ensure ensure that that any any retrofits retrofits required required to to bring bring the the living living units units and and public public use use

and and common common use use areas areas into into compliance compliance with with the the accessibility accessibility provisions provisions ofthe ofthe Fair Fair

Housing Housing Act Act be be done done in in a a prompt prompt and and efficient efficient manner; manner;

4. 4. Awards Awards monetary monetary damages damages pursuant pursuant to to 42 42 U.S.C. U.S.C. §§ §§ 3612(0)(3), 3612(0)(3), 3613(c)(l), 3613(c)(l), and and

3614(d)(l)(8), 3614(d)(l)(B), to to all all persons persons harmed harmed by by the the FHA FHA Defendants' Defendants' discriminatory discriminatory practices, practices,

including including FHD. FHD.

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The The United United States States further further prays prays for for such such additional additional reliefrelief as as the the interests interests ofof justice justice may may

requIre. requIre.

MARTY MARTY J. J. JACKLEY JACKLEY United United States States Attorney Attorney District District of of South South Dakota Dakota

.;;r.tUL .;;r.(UL ;:6dJKnr10--;;6~ 7 l----(JAN (JAN L. L. HOLMGREN HOLMGREN

F • ;

Assistant Assistant United United States States Attorney Attorney P.O. P.O. Box Box 2638 2638 Sioux Sioux Falls, Falls, South South Dakota Dakota 57101 5710 I (605) (605) 330-4400 330-4400 (605) (605) 330-4402 330-4402 (Fax) (Fax)

ERIC ERIC H. H. HOLDER, HOLDER, JR. JR. Attorney Attorney General General

o TTAKING Acting Acting Assistant Assistant Attorne Attorne Civil Civil Rights Rights Division Division

DONNA M. MURPH Acting Acting Chief, Chief, Housing Housing nd Civil

Enforcement Enforcement Section Section

TIMOTHY'f. TIMOTHY'f. MORAN MORAN Deputy Deputy Chief Chief DANIELH. DANIELH. YI YI Trial Trial Attorney Attorney U.S. U.S. Department Department of of Justice Justice Civil Civil Rights Rights Division Division Housing Housing and and Civil Civil Enforcement Enforcement Section Section

950 950 Pennsylvania Pennsylvania Ave. Ave. N.W. N.W. -- G G St. St. Washington, Washington, D.C. D.C. 20530 20530 (202) (202) 504-470 504-470 I I (202) (202) 514-1116 514-1116 (Fax) (Fax)

Dated: Dated: May May ~, --.1.L, 2009 2009

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United States v. Equity Homes, Inc. (D. S.D.)2010/12/14 · 10. 10. Defendant Equity Homes, Inc....

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